The Average Directional indicator (or ADX) is a directional trading indicator that is used to identify a technical trend, in this case of the Factom. The trend that is being identified, can be both a positive trend as a negative trend in the pricedevelopment of Factom.
The ADX was primarily developed for commodities, however it is also in use for stock and currency technical analysis, as well as for Factom. In this continuously updated article, we will explain the meaning and current trend of Factom. The current ADX analysis is based on the historical prices of Factom until March 23rd, 2023.
In the chart below, the strength the trend is drawn, as well as the positive and negative directional indicators. The ADX (Average Directional Index) is the black line. The positive directional indicator (+DI) is the green line, and the negative directional indicator (-DI) is drawn in red.
In the chart above, the development of the price for Factom is shown for the period from 09/22/2022 until 03/23/2023. This same timeframe has been used in the average directional indicator chart below.
In the charts above, you can see the trends of the ADX, +DI and -DI. The current values of these three indicators for the Factom are listed in the table below.
| Factom average directional index | 36.73 |
| Factom positive directional indicator | 40.30 |
| Factom negative directional indicator | 22.07 |
Several signals can be gained from the chart above. First of all, the green line gives us an indication of the positive trend. The opposite line, the red one, indicates the negative trend for Factom.
When the green line tops the red line, the Factom is in a positive trend. However, when the situation turns around, the trend has also changed to a negative trend for Factom.
Furthermore, the black line gives the strength of the current trend of Factom, both positive and negative. The higher the black line (ADX), the stronger the trend.
Factom ADX score
The Average Directional Index (ADX) is used to measure the strength or weakness of a trend, not the actual direction. In general, when the positive directional indicator is higher than the negative directional in indicator, the trend of Factom is assumed to be positive. An important signal is when the -DI (red line) and +DI (green line) crosses over.
The current directional indicator gives a positive signal for Factom. The positive directional indicator for Factom is 40.30, which is higher than the negative directional indicator (22.07). The trend that the Factom follows is a positive one.
The current ADX value is 36.73, which tells us that the current trend is strong. Using these values, we can asume that the Factom will continue its upwards trend. In short, the current average directional index gives us a buying signal for the Factom. However, keep an eye on turning trends.